Mid-Island Mortgage glossary - D

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D

debt

An amount owed to another. See installment loan and revolving liability.

deed

The legal document conveying title to a property.

deed-in-lieu

A deed given by a mortgagor to the mortgagee to satisfy a debt and avoid foreclosure. Also called a "voluntary conveyance."

deed of trust

The document used in some states instead of a mortgage; title is conveyed to a trustee.

default

Failure to make mortgage payments on a timely basis or to comply with other requirements of a mortgage.

delinquency

Failure to make mortgage payments when mortgage payments are due.

deposit

A sum of money given to bind the sale of real estate, or a sum of money given to ensure payment or an advance of funds in the processing of a loan. See earnest money deposit.

depreciation

A decline in the value of property; the opposite of appreciation.

dower

The rights of a widow in the property of her husband at his death.

down payment

The part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.

due-on-sale provision

A provision in a mortgage that allows the lender to demand repayment in full if the borrower sells the property that serves as security for the mortgage.

due-on-transfer provision

This terminology is usually used for second mortgages. See due-on-sale provision.